Throughout 2023, rents have soared nearly 9% higher than the previous year, as outlined in the latest Rental Index from Goodlord. This dramatic increase has left renters paying an average of £1,182 per property, up from £1,086 in 2022.

The London Leap

London, as always, leads the way in high rental prices. In September 2023, the capital hit a record high with average rents reaching an astounding £2,275 per property, a significant jump from the £2,055 average in September 2022.

Regional Rundown

While London prices soar, the North East remains the most affordable region. The average rent here was just £874 throughout 2023, a stark contrast to the hefty £1,974 average in Greater London.

December Dynamics

December 2023 brought a brief respite with a small decrease in month-on-month rents. Average rents across the UK dipped by 1.7%, a trend typically seen during the quieter Christmas period.

Despite the December dip, rents were still up 7% compared to December 2022, reaching an average of £1,147.

Highs and Lows

Greater London once again topped the charts with the highest rents at £1,932. In contrast, the North East maintained its position as the most budget-friendly region, with an average rent of £853, more than 50% lower than that in the capital.

Expert Insight

Oli Sherlock, managing director of Insurance at Goodlord, paints a vivid picture of the 2023 rental market as a “rollercoaster year.” He highlights the unprecedented demand for rental properties, a result of the growing tenant population grappling with entrenched supply and demand issues.

Looking Ahead

Sherlock anticipates 2024 to continue this trend of high rents and escalating demand, alongside ongoing regulatory changes. The lettings industry, he notes, has been striving to keep pace with this demand, as evidenced by historically low void periods throughout the year.

The Bottom Line

The UK rental market in 2023 has been characterised by significant rent increases, with London leading in high prices. Despite a slight decrease in December, the overall trend suggests that rents will continue to rise, driven by high demand and supply constraints.